September 11th, 2014. Ben Lloyd
Conversion Trends: What Will Add the Most Value?
If you’ve recently purchased a run-down property in order to turn a profit, then you may be considering your options for developing and extending the current build. And conversions have probably already sprung to mind. But which type of conversions are more popular, and most importantly, most profitable? Let’s take a look:
It’s common knowledge that loft conversions are popular, and they are often used to add value to a property. But are they still popular? And just how much value are you looking at?
Loft conversions are still very much in demand: Using your loft conversion to create an extra double bedroom and an en suite will be a winner with your potential buyers. And, according to Nationwide, this type of loft conversion in our current property market, could boost the value by around 21 percent – that’s a whopping £54,500 for an average-priced house in England.
As long as the conversion costs you just a fraction of that cost, you’re looking at a very healthy profit. And with the added appeal of the extra space, you’re more likely of a quick sale too!
Basement conversions can be a little more troublesome than your average loft conversion, but they can still offer a healthy return on investment as long as you get the project right and keep costs to a minimum. They will offer a unique selling point when you are ready for the property to enter the market, and for a potential buyer, it offers a lot more space – especially if coupled with a loft conversion. Again, this could result in a much quicker sale.
An Extra Bedroom
Another popular choice with today’s property buyer is a bedroom extension. Adding an additional bedroom to the property by building an extension can add around 11 percent to the value. Equally you could extend to make space for an office or gym area – both popular choices with the modern buyer.
An Additional Bathroom
Opting to include an extra bathroom or a modern wetroom into your development can also be wise. This can prove to add around 5 percent to the value of the house.
Those are some of the most popular, and most lucrative, conversions or extensions for a development in today’s market – which are you adding to your latest project?
If you’re looking for more information on financing a conversion, give our team a call today – we’ll talk you through your options.
Article By Ben Lloyd
September 11th, 2014
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben